Truist Initiates Coverage of Global-e (GLBE) with Sell Rating

On Monday, Truist initiated coverage on Global-E Online Ltd. (NASDAQ:GLBE) with a Sell rating and a $31 price target. Analyst Matthew Coad cited the company’s exposure to ongoing tariff issues in cross-border e-commerce for this sentiment and noted that the current market projections haven’t sufficiently accounted for the changing macroeconomic environment.

A shopper browsing through products online from the comfort of their home.

Truist anticipates that the company’s shares will likely underperform competitors until analysts revise their growth projections downward. Despite this bearish initiation, Global-e reported strong financial results for Q1 2025 earlier in May. The company’s GMV rose 34% year-over-year to $1.24 billion, and revenue increased 30% year-over-year to $189.9 million. Global-e also issued Q2 revenue guidance of $204 to $211 million and maintained its full-year 2025 revenue guidance of $917 to $967 million.

Although Global-e reported a net loss of $17.9 million in Q1, primarily due to Shopify warrant amortization expenses, the company expects to achieve GAAP profitability starting in Q2 once these amortizations conclude. Global-e’s new 3-year partnership agreement with Shopify particularly reinforces its role as the exclusive provider of merchant of record services for Shopify’s branded solution. The company also launched a new 3B2C offering to help merchants mitigate tariff-related costs and continues to expand its merchant base with notable brands. However, the company faces headwinds from heightened US import tariffs, which could negatively impact ~12% of its US inbound GMV.

Global-E Online Ltd. (NASDAQ:GLBE) provides a DTC cross-border e-commerce platform in Israel, the UK, the US, and internationally. Its platform enables international shoppers to buy online and merchants to sell worldwide.

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Disclosure: None. This article is originally published at Insider Monkey.